Hardship Withdrawal Clause Samples
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Hardship Withdrawal. If permitted by the Employer in the Adoption Agreement, a Participant in a profit-sharing plan may request a hardship withdrawal prior to attaining age 59 1/2. If the Participant has not attained age 59 1/2, the Participant may be subject to a federal income tax penalty. Such request shall be in writing to the Employer who shall have sole authority to authorize a hardship withdrawal, pursuant to the rules below. Hardship withdrawals may include Elective Deferrals and any earnings accrued and credited thereon as of the last day of the Plan Year ending before July 1, 1989 and Employer related contributions, including but not limited to Employer Matching Contributions, plus the investment earnings thereon to the extent vested. Qualified Matching Contributions, Qualified Non-Elective Contributions and Elective Deferrals reclassified as Voluntary Contributions, plus the investment earnings thereon are only available for a Hardship Withdrawal prior to age 59 1/2 to the extent that they were credited to the Participant's Account as of the last day of the Plan Year ending prior to July 1, 1989. The Plan Administrator may limit withdrawals to Elective Deferrals and the earnings thereon as stipulated above. Hardship withdrawals are subject to the Spousal consent requirements contained in Code Sections 401(a)(11) and 417. Only the following reasons are valid to obtain hardship withdrawal:
(a) medical expenses [within the meaning of Code Section 213(d)] of the Participant, his or her Spouse, children and other dependents,
(b) the purchase (excluding mortgage payments) of the principal residence for the Participant,
(c) payment of tuition and related educational expenses for the next twelve (12) months of post-secondary education for the Participant, his or her Spouse, children or other dependents, or
(d) the need to prevent eviction of the Employee from or a foreclosure on the mortgage of, the Employee's principal residence. Furthermore, for Plans on Adoption Agreements 003 and 006, the following conditions must be met in order for a withdrawal to be authorized:
(e) the Participant has obtained all distributions, other than hardship distributions, and all nontaxable loans under all plans maintained by the Employer,
(f) all plans maintained by the Employer provide that the Employee's Elective Deferrals and Voluntary Contributions will be suspended for twelve months after the receipt of the Hardship distribution,
(g) the distribution is not in excess of the amount of th...
Hardship Withdrawal. In the event the Employee suffers an unforeseen financial emergency, as defined hereafter, the Company may, if it deems advisable in its sole and absolute discretion, distribute to or utilize on behalf of the Employee as a hardship benefit (the “Hardship Benefit”) any portion of the Employee’s Retirement Account. The Company shall have exclusive authority to determine whether to make a hardship distribution, and the Company’s decision shall be final and binding on all parties. Any hardship distribution shall, like all distributions, reduce the amounts available for subsequent distributions and be deducted from the Retirement Account. The Employee shall apply for such a Hardship Benefit in writing in a form approved by the Company and shall provide such additional information as the Company shall require. For purposes of this Paragraph, “unforeseen financial emergency” means an immediate and heavy financial need caused by an unforeseable emergency, as described in Treasury Regulations Section 1.457-2(h) (4) and (5), defined as a severe financial hardship to the Employee resulting from a sudden and unexpected illness or accident of the Employee or a dependent of the Employee (as defined in Code Section 152(a)) of the participant, loss of the participant’s property due to casualty, or other similar extraordinary and unforeseable circumstances arising as a result of events beyond the control of the Employee. The circumstances that will constitute an unforeseeable emergency will depend upon the facts of each case, but in any case, payment may not be made to the extent that such hardship is or may be relieved:
(1) Through reimbursement or compensation by insurance or otherwise,
(2) By liquidation of the Employee’s assets, to the extent the liquidation of such assets would not itself cause severe financial hardship, or
(3) By cessation of deferrals under this Agreement. No distribution shall be made pursuant to this paragraph in excess of the amount of the immediate and heavy financial need of the Participant. The amount of the immediate and heavy financial need may include any amounts necessary to pay federal, state, or local income taxes or penalties reasonably anticipated to result from the distribution, Any distribution under this paragraph shall reduce the Retirement Account.
Hardship Withdrawal. 9 (d) Leave of Absence.......................................................................9 3.3. Payment of 401(k) Contributions to Trustee......................................................9 3.4. Rollover Contributions..........................................................................9 (a) General................................................................................9 (b) Rollover Accounts......................................................................9 ss. 4. EMPLOYER CONTRIBUTIONS....................................................................................10
Hardship Withdrawal. A Participant's 401(k) Contributions will be suspended for the six month period following a hardship withdrawal in accordance with ss. 7.3(a)(4). A Participant may resume 401(k) Contributions at any time after the end of the suspension period. The suspension period for hardship withdrawals made prior to January 1, 2002 shall be twelve (12) months.
Hardship Withdrawal. (a) If the Employer so selects in the Adoption Agreement, and the Plan Administrator, in its sole discretion exercised in a non-discriminatory manner, may permit a Participant to withdraw a portion of his Employer Account for the purpose of enabling the Participant to meet an unusual hardship or financial emergency such as, but not limited to:
(i) accident or illness,
(ii) purchase or preservation of a house, and/or
(iii) educational expenses. Such hardship distributions are subject to the spousal consent requirements of Section 401(a)(11) and 417 of the Code and may not exceed the amount of an immediate and heavy financial need.
(b) Withdrawals shall be limited to the vested portion of his Employer Contribution Amount. ___________________________________________________ ARTICLE XII - Form and Manner of Benefit Distribution Page 52
13.1 Establishment of Trust
Hardship Withdrawal. If permitted by the Trustee/Custodian and the Employer in the Adoption Agreement, a Participant in a profit-sharing plan may request a hardship withdrawal prior to attaining age 59-1/2. If the Participant has not attained age 59-1/2, the Participant may be subject to a federal income tax penalty. Such request shall be in writing to the Employer who shall have sole authority to authorize a hardship withdrawal, pursuant to the rules below. Hardship withdrawals are subject to the Spousal consent requirements contained in Code Sections 411(a)(11) and 417. Only the following reasons are valid to obtain hardship withdrawal:
(a) medical expenses [within the meaning of Code Section 213(d)] of the Participant, his or her Spouse, children and other dependents,
(b) the purchase (excluding mortgage payments) of the principal residence for the Participant,
(c) payment of tuition and related educational expenses for the next twelve (12) months of post-secondary education for the Participant, his or her Spouse, children or other dependents, or
(d) the need to prevent eviction of the Employee from or a foreclosure on the mortgage of, the Employee's principal residence. Furthermore, the distribution may not be in excess of the amount of the immediate and heavy financial need [(a) through (d)] above. The Participant must certify that other assets are not available to meet the hardship. If a distribution is made at a time when a Participant has a nonforfeitable right to less than 100% of the account balance derived from Employer contributions and the Participant may, by virtue of continuing Service, increase the nonforfeitable percentage in the account:
(a) a separate account will be established for the Participant's interest in the Plan as of the time of the distribution, and
(b) at any relevant time the Participant's nonforfeitable portion of the separate account will be equal to an amount ("X") determined by the formula: X = P [AB + (R X D)] - (R X D)
Hardship Withdrawal. A Participant may elect to withdraw all or part of the vested balance in his Participant Account in cases of financial hardship with the prior approval of the Plan Sponsor. All applications for hardship withdrawal must be made in writing to the Plan Sponsor setting out the basis of the hardship condition and the Plan Sponsor may ask for such information and any supporting documentation from the Participant as it sees fit to prove such hardship. Should the Plan Sponsor approve a case of hardship, a withdrawal will be effective as soon as administratively practicable and the value of the Participant Account shall be determined by the Market Value on the date such amount is withdrawn.
Hardship Withdrawal. A Participant may request, in writing to the Deferred Compensation Committee, a distribution under the Plan if the Participant experiences a financial hardship. A "financial hardship" is an unanticipated emergency that is caused by an event beyond the control of a Participant and that would result in severe financial hardship to the Participant if early withdrawal were not permitted. The Deferred Compensation Committee, in its sole discretion, shall determine whether a Participant has experienced a financial hardship. The amount of any distribution for financial hardship is limited to the amount of the severe financial need, which cannot be met with other resources of the Participant. The amount of such hardship distribution shall be debited to the Participant's Termination Benefit Balance until depleted, and then to the Interim Distribution Balance (commencing with the Distribution Balance sub-account relating to the most distant Interim Distribution Date) until depleted. Such distribution shall be determined utilizing the last monthly valuation of the Account Balance preceding the Hardship Withdrawal and shall be payable within fifteen (15) days following approval of the Hardship Withdrawal by the Deferred Compensation Committee.
Hardship Withdrawal. Per federal regulation teachers are not able to contribute to their annuity account after a hardship withdrawal for 6 months following the transaction. Also during the 6 month period described, the district unable to make matching contributions.
Hardship Withdrawal. In the event that the Director suffers an immediate and heavy financial need which cannot reasonably be met from other sources, the Director shall be permitted to withdraw from the bookkeeping account established on his behalf an amount equal to the amount needed to meet the immediate and heavy financial